Minister of Transportation and Works, Montgomery Daniel, is urging Vincentians to pay attention to the age of vehicles and the transportation time when buying them from overseas, so as to avoid additional taxes.
He made the call on NBC Radio on Wednesday, saying that the Cabinet is plagued by requests to break the government’s policy on taxation on used vehicles.
Daniel said that the Ministry of Finance and Planning is responsible for the policy on the importation of vehicles.
“And whenever vehicles are imported, the port executes the policy,” he said, noting that there is, in essence, a ban on the importation into SVG of vehicles that are more than 12 years old.
“But even though there is this ban, you can import the vehicle, but it means that you have to pay the taxes that are attached to these vehicles,” Daniel said.
“And what happens is that the older the vehicle is, the more environmental taxes that will be incurred on these vehicles.”
He further stated that the policy is that there is very little environmental tax on vehicles that are 8 years old and under.
“… but a vehicle that is less than 8 years old, … it is going to cost a little more upfront as you order that vehicle.”
Daniel said that some importers are going to “the very margin” of 8 years without taking into account the time it would take to transport the vehicle from the source market to SVG.
“And what makes it worse is that if there is a shipping delay, it compounds the issue.”
In such cases, when the vehicle arrives in SVG, it is more than 8 years old, and the importer or owner would apply to the Cabinet for “leniency” on the environmental tax.
Daniel, however, said the policy is clear that once the vehicle is older than 8 years, the importer/owner has to pay the tax.
“Unfortunately, the cabinet is bombarded with this issue on a weekly basis, where individuals seek leniency on these matters and the Cabinet cannot make a policy to be breaking that policy on a weekly basis,” the transportation minister said.
“Therefore, the policy has to continue until the policy is changed. However, in recent discussions with the Ministry of Finance, personally, that the ministry has undertook to review the policy position. I cannot say at this point in time whether or not … the consequences will be much better.”
Daniel said he has to wait until the recommendations come to the Cabinet for further discussion.
“So until now, this is the policy that is before the Cabinet, and I can only urge individuals to understand the policy as it relates to the importation of used vehicles, and before you do import any such vehicle, to have the matter cleared and to understand as clear as possible as to how you can proceed to prevent the heavy increase of taxes beyond the eight-year period.”
The minister said that you might “see a vehicle that is one that is considered a vehicle that you can use, bearing in mind that some king or queen may have had that vehicle for some years, or some celebrity may have had that vehicle.
“And it may well be 20, 25, years, 30 years, and you may want to import it. Fine. It means, therefore, with such an importation, that you’d have to pay the cost that is associated with the age of that vehicle.”
As per usually a very stupid comments. Daniel you are one strange guy and a minister of government at that. How “did us” get here?
Which is worst a vehicle that is 20 years old and have 70 thousand miles or a 5 year old vehicle with 120 thousand miles.
The common sense thing to do should be the higher taxes on the vehicle with the most mileage. In any event that law is just there to raise funds and prevent the smaller man from earning a little ride. What effect can few cars in svg have in the environment when compared with the US who has millions of cars on the road 20 years and older.
But as he said what can us do.
Tell you old fools what you all can do take a look at Abraham Traore and stop hugging power.
I hear you Mr. Minister. However, the cabinet is the executive arm of government and is empowered to vary/modify any governmental policy.
So why not exercise that authority until you receive that review from the finance ministry and give poor people a break and the opportunity to own a vehicle.
Governments are there to facilitate the empowerment of its citizens. If the policy is creating hardship for your people, then change/ amend the policy.
Don’t pass the buck and drag the issue through the inefficient government bureaucracy!
There is always all sorts of orange and red tapes when it comes to anything to benefit the poor, vulnerable and ordinary people in the country.
The reason why cabinet is bombarded with requests for waivers of the environmental fees is because people can’t afford it. And you can do something to help them.
Mr. Daniel should be more wiser than that. You claimed an environmental tax on the vehicle and your country is not doing emissions and other test required to support that. So what really is your tax based on, just the age of the vehicle? Well, there are vehicles older than what you are talking about and have better emissions control and more roadworthy ,than some newer ones. In countries where they are concerned about environmental issues, they do emissions and other test. Once the vehicle passes the road worthy/emissions test, it can be many years old and still operating. Mr. Daniel, you all need to do better. Get some more science and technology behind the environmental tax mast, that you are oppressing your fellowmen with. I was in Kingstown and the level of emissions given off by the idling vehicles, need some control. A standing vehicle should not be idling for so long in a small town. The things you should be looking into, if you are concerned about environment, is not putting on tax on age of the vehicle. You are not making much sense sir.
Amazing yet again how does the everyday person/persons afford to have a somewhat decent vehicle in SVG?? Fact a 12 year old vehicle from lets say the UK would pass any environmental test they have in SVG, which they don’t have any emissions testing, ok lets be sensible lets go with 10 years 2015 as its now 2025, anyone who has visited lived visited overseas knows the Cars/ vehicles would be hands down beat 85% of the vehicles presently in SVG, so where does that leave us with, yes plain words dun know the haves can get better vehicles because dem know how to get them in the country without paying stupid amount of money to Clear(Fact)or as some of us know depending on your position YOU PAY NOTHING to Clear,So tell me how is the higher echelons helping us the poorer ones ?????/ so we can own something half decent( noticed I said half decent) that hasn’t got cracked windscreens rusty bodies hold on , environmentally helping by not churning out all the black smoke out of the exhaust ?? No mek de poorer ones stay in their lane ???? By the way I was one that got stung very hard on bringing in a vehicle 10 years ago and to this day still hurts(FACT) one rule for one one rule for others FACT
BET THIS DOESN’T GET PUBLISHED lol
Why do we need to import second hand automobiles for sale. Ralph Gonsalves keeps the country poor and begging. Daniel is no better, while he lives high on the hog people are relegated to buy used products.